Economics: The Basics 1st Edition by Mike Mandel

Exercise 12

A town changes its zoning regulations to close down all its dance clubs because too many workers are staying out late and aren't able to come to work the next day.
a) In the short run, does the labor supply curve shift to the left, to the right, or stay the same? What happens to production in the town?
b) The town develops a reputation as a boring place, so young people no longer want to live there. In the long run, does the labor supply curve shift to the left or the right?
c) In the long run, would you expect wages and employment to go up or down? Explain your reasoning.